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The Effect of Disclosure of Intellectual Capital Components on the Market Price of Shares in Jordanian Industrial Companies: An Empirical Study

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  • Osama Abdulmunium Ali

    (Faculty of Economics and Rural Development, Vietnam National University of Agriculture, Vietnam)

Abstract

This study aims to identify the effect of the disclosure of intellectual capital on the market value of shares in Jordanian commercial banks by shedding light on the level of disclosure of intellectual, human, structural and relational capital on the market value of the share. The study community shall be composed of all the Jordanian industrial companies and public shares traded in the Amman Stock Exchange during the study period (2013-2016). To achieve the objectives of the study, the researcher collected secondary data through reference to previous studies, books and administrative research on the subject of disclosure, as well as specialized journals. The researcher used the statistical program (SPSS) to analyze the data. The study reached the most important results which showed that the general trend in the four years (2013-2016) was towards increasing the level of disclosure of the components of intellectual capital. This indicates the continuous increase by the industrial companies at the level of disclosure, However, this level was below the required threshold, not exceeding in all years (56.0%). There is also a relative increase in the level of disclosure of structural capital and interest relative to the disclosure of human capital, which may be seen as a decline in the interest of companies in the development of their human resources compared to the structural aspect and relations with other parties. The study recommended that companies' managements should monitor the changes in their share prices, trading volume and how investors evaluate the company's shares, in order to confirm the achievement of the most important objectives of financial management. Disclosure of intellectual capital components, and companies based on reference comparisons with international companies, to reach full disclosure of all items that measure the components of intellectual capital.

Suggested Citation

  • Osama Abdulmunium Ali, 2018. "The Effect of Disclosure of Intellectual Capital Components on the Market Price of Shares in Jordanian Industrial Companies: An Empirical Study," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 156-167.
    • Handle: RePEc:eco:journ1:2018-05-22
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    References listed on IDEAS

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    1. Luminita-Maria GOGAN & Dan Cristian DURAN, 2014. "Intellectual Capital Management – A New Model," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 6, pages 57-64, December.
    2. Norman Mohd Saleh & Mohamat Sabri Hassan, 2013. "Intellectual capital indicators influencing investment decision," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 10(2), pages 183-211.
    3. Vivien Beattie & Sarah Jane Thomson, 2007. "Lifting the lid on the use of content analysis to investigate intellectual capital disclosures," Accounting Forum, Taylor & Francis Journals, vol. 31(2), pages 129-163, June.
    4. Nielsen, Christian & Madsen, Mona Toft, 2009. "Discourses of transparency in the intellectual capital reporting debate: Moving from generic reporting models to management defined information," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(7), pages 847-854.
    5. Claudiu-Marian Gruian, 2011. "The Influence Of Intellectual Capital On Romanian Companies' Financial Performance," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-9.
    6. Abdifatah Ahmed Haji, 2015. "The role of audit committee attributes in intellectual capital disclosures: Evidence from Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(8/9), pages 756-784, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    accounting disclosure; intellectual capital; market price per share;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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